RERA Rajasthan Caps Penalty for Builders at ₹3 Lakh: What Homebuyers & Developers Must Know

🏡 Introduction

In a significant move to balance enforcement and builder accountability, the Rajasthan Real Estate Regulatory Authority (RERA) has introduced a new rule that limits penalties for non-submission of project progress reports to ₹3 lakh. This change is expected to ease pressure on builders while boosting transparency for homebuyers.

📋 What Was the Problem Before?

Previously, builders who failed to submit regular progress reports were penalized without any upper limit. This led to:

• Massive delays in submissions


• Fear among developers due to rising penalties


• Lack of project transparency for thousands of homebuyers

🆕 What Has Changed Under the New RERA Rule?

🔹 Key Highlights:

• Penalty Cap: Builders will now pay a maximum of ₹3 lakh, regardless of how long the report is delayed.


• Monthly Fine: A late fee of ₹5,000/month will be applicable after a one-month grace period.


• Deadline for Regularization: Builders have time until 31 October 2025 to take action under the new cap.

💡 Example Calculation

🎯 Who Can Benefit From This Change?

This policy provides relief to:

• Builders with pending project completion reports


• Projects missing occupation or layout approvals


• Developers who were hesitant to file due to unlimited penalties

✅ Benefits for Homebuyers

🔍 Increased Transparency

More builders will now submit pending documents, giving buyers a clear view of project status.

🔐 Trust & Accountability

Homebuyers will be able to track project progress, which may help reduce fraud, misinformation, or possession delays.

🧭 Regulatory Confidence

This decision encourages timely reporting, bringing more credibility to RERA and accountability from builders.

📣 RERA’s Official Stand

“The goal is to bring delayed builders back into the system. This will help improve compliance and ultimately provide more clarity and confidence to property buyers.”

⚠️ Not a Free Pass: Strict Measures Remain

This isn't an all-out relaxation. Builders who:

• Consistently avoid filing


• Ignore RERA notices


• Fail to comply even after this opportunity

...may face:

• Non-Compliance Notices


• Project Suspension


• Legal action & blacklisting

📅 What Builders Should Do Now

• Submit all pending completion reports before 31st October 2025


• Pay any applicable penalties (capped at ₹3 lakh)


• Avoid future delays by maintaining regular submissions

🛠️ What Homebuyers Should Ask Builders

• Is the project registered with RERA?


• Have they submitted the latest progress/completion report?


• What’s the expected date of delivery?


• Can you get a copy of the latest RERA filing?

🔚 Final Thoughts: A Win-Win Reform

RERA Rajasthan’s new rule is a step toward smarter governance — easing the penalty burden on genuine builders while ensuring greater transparency and confidence for homebuyers.

This reform strikes the right balance between compliance and relief, helping revive stalled projects and encourage honest reporting.